Marriage Tax Allowance needs urgent action

The new tax year is right upon us and that means urgent action is required by those wishing to claim their marriage tax allowance.

There are only a few days before 6th April 2016 to get it touch with the tax man or your accountant, with an opportunity to be potentially over £200 better off for some couples.

As legislation stands, if you are married, under 80, a tax payer and your partner does not pay tax, then you need to act now. If you’re personal circumstances fit exactly with these criteria you will be entitled to claim £212 from HMRC under the “Marriage Tax Allowance” scheme.

The Marriage Tax Allowance was introduced in April 2015 by the Government to reward marriage – so you must be married or be civil partners in order to claim the allowance.

Of course, it is somewhat different to the allowance that many of us of a certain vintage can recall, when everyone who was married regardless of circumstances used to be a few pound a week better off.

The current allowance allows the non-tax payer to give £1,060 of their tax-free allowance to the taxpayer. This means that the £1,060 at the 20% basic tax band rate is then tax free – £212.

However, you have to act now. So, in order to claim the allowance follow the instructions below immediately. Firstly, apply at www.gov.uk/marriage-allowance  and:-

  • Have your and your partner’s National Insurance numbers to hand.

You will also need to show a way to prove your identity. This can be done by providing one of the following:

  1. a) the last 4 digits of the account that your child benefit, tax credits or pension is paid into;
  2. b) the last 4 digits of an account that pays you interest
  3. c) details from your P60

After you have applied online, you will get an email confirming your application.

It really is that simple, so there’s really no excuse not to claim.

Remember the tax man isn’t known for giving out money, so where there’s an opportunity, it makes sense to take the chance.